If you subscribe to our premium newsletter, you’ll remember our December 2021 issue where we talked about the Formula for Volatility in 2022.
We said:
“2022 will redefine how you look at volatility… and we could likely see a Man-Made Depression.”
And we don’t like making predictions but… and this is a very Big Butt…
Unlike most financial newsletters, instead of predicting which stock is going to go up 6,439% in the next few days, we focus on the macro-picture.
Why?
It enables us to be in position to prosper AND thrive in Turbulent Times.
But here’s the point.
Most people tend to limit their understanding of volatility as something that happens ONLY when markets are falling.
But this past week we saw the markets rise over 1,400 points on the DOW.
A Simple Formula for Volatility
The month of April (and so far in May) was a prime example of how volatility works.
And also, why you need to pay attention to a formula for volatility.
We have seen multiple days where we’ve seen total swings of over 1,000 points in one day.
However, if all you did was look at the closing price, you would think, “Wow, the Dow was up (or down) over 300 points today.”
But this is the kind of volatility that Wall Street loves.
And for several reasons:
- It generates HUGE commissions.
- Allows the Boyz to dump a lot of unwanted inventory.
- Volatility makes the normal investor nervous.
- It sets the small investor up for the “Kill shot”
The boyz in the “Club” use this volatility formula over and over again.
It’s like the instructions on the back of a shampoo bottle: “Wash, Rinse, Repeat.”
So, the question should be; How do you avoid getting killed?
First, you must understand that the deck is stacked against you.
Second, you must learn how to embrace volatility instead of fearing it.
As usual, it’s easier said than done because your emotions will always work against you.
However, having ears to hear what the market is telling you, is the secret to embracing volatility.
So, learn how to make volatility your friend…and profit from it (HERE).
And share this with a friend…especially if they’re scared of volatility in the markets.
They’ll thank YOU later.
At Financial$Matter We’re Not Just About Finance.
We simply use finance to give you hope.
https://www.financialsmatter.com/category/in-plain-english/
More Stories
Sunday Funnies, If You’re Not Offended…
Saturday Rant…The Many Grinches
Climate Change…the Cover for Default